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Delivery and pricing investment pays off at Asos

Sales at Asos grew 26% to £1.4bn in the year to 31 August as it continued to invest in delivery and pricing.

Retail sales were up in all of Asos’s major markets - the UK, US and Europe.

Retail gross margin slipped by 30 basis points, as price investments in the US, Europe and rest of the world were offset by a higher full-price mix.

Pre-tax profit before exceptional items rose 37% to £63.7m. However, its pre-tax profit after exceptional items slumped 31% to £32.7m after Asos agreed to pay a one-off legal settlement of £20.9m to settle ongoing trademark infringement disputes.

The business also discontinued its operations in China during the year, which incurred an operating loss before tax of £3.6m up to the point of closure in May 2016 and one-off exceptional closure costs before tax of £6.5m.

Chief executive Nick Beighton said: “I’m pleased with progress in the business. The strength of these results reflects our unwavering focus on delivering great customer experience, supported by rigorous execution of our investments.

“We continue to target our growth opportunities, so we’re accelerating investment in both logistics and technology. The pace at Asos is continuing in the new financial year, which we are looking forward to with confidence.”

 

 

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